Which Products are More Responsive to In-Store Displays: Utilitarian or Hedonic?

Abstract

[EN] In-store displays aim to boost sales of both utilitarian and hedonic products. Noting typical differences in the information processing andpurchase behavior evoked by these product types, and building on congruency theory principles, the authors propose that different types of in-storedisplays (i.e., island, end-of-aisle, or shelf signage) are more appropriate for utilitarian versus hedonic products, and the use of price or productpromotions might reinforce these effects. With a database that combines three data sources (scanner, observational, and survey), this article presentsan analysis of a market share model at the SKU level. The results confirm that in-store displays have differential effects on sales, depending on theircharacteristics; congruency between the decision-making process of utilitarian versus hedonic products and the characteristics of in-store displaytypes moderates their effectiveness in terms of SKU sales. Shelf signage strongly increases the sales of utilitarian products, whereas island andend-of-aisle displays increase sales of hedonic product categories more effectively. The use of congruent promotions creates synergistic influencesthat reinforce these effects. In particular, price promotions improve the impact of shelf signage on utilitarian products, and product promotionsstrengthen the impacts of island and end-of-aisle displays on hedonic products. These results extend prior research on in-store marketing actionsand the nature of utilitarian versus hedonic products, as well as providing recommendations for retailers and manufacturers seeking to optimizetheir retail space and commercial budgets.